What is Auto-Renewal in a Health Insurance Policy?

Auto-renewal in the health insurance policy is a characteristic where your health insurance company renews the policy automatically before it expires by charging the premium to your mode of payment (registered). This will allow you to keep your coverage without any lapse, as long as the payments are made and the policy meets the insurer's renewal conditions.

Auto-renewal is preferred by many policyholders because it helps ensure uninterrupted coverage and allows them to continue enjoying ongoing policy benefits without missing renewal deadlines.

How Does Auto-Renewal Work in Health Insurance?

In the auto-renewal facility, you authorize the insurer to automatically renew your policy on the due date. The premium is usually deducted from:

• Debit card


• Credit card


• Unified Payments Interface (UPI)


• Net banking


• Auto-debit mandate

Insurers tend to remind policyholders about the upcoming premium payment and policy renewal by sending SMS messages and emails before the specified renewal date.

In case of a successful payment, the policy is not interrupted. Nevertheless, the policy cannot be renewed automatically in case of failure to pay because of a lack of funds, the expiry of the card details or technical problems.

What are the Benefits of Auto-Renewal in Health Insurance?

Auto-renewal may help policyholders maintain continuous health insurance coverage. Some of the key advantages are:

Avoids Policy Lapse

Failure to pay the renewal date can lead to discontinuation of the policy. Auto-renewal helps minimize the risk of forgetting premium payments.

Maintains Waiting Period Continuity

Policies of health insurance usually include waiting periods for pre-existing illnesses and specific treatments. Continuous renewal will help maintain the already completed waiting period.

Retains No Claim Bonus

A claim-free No Claim Bonus (NCB) is offered by many insurers by adding a sum to the amount insured without necessarily raising the premium. This benefit is retained by timely renewal.

Saves Time and Effort

This is because the policyholders do not have to physically renew the policy annually; hence, the process becomes easier.

Are There Any Things to Check Before Enabling Auto-Renewal?

Prior to activating auto-renewal, one should take into account several aspects:

• Make sure your bank account or card information is up to date.


• Inquire about whether the insurer has amended the amount of the premium.


• Examine policy term, inclusion or exclusion changes or waiting periods.


• Read the insurer's renewal notification carefully.


• Inquire about whether there is enough money to deduct payments automatically.

Can Auto-Renewal Be Cancelled?

Yes, the majority of the insurers permit the policyholders to turn off the auto-renewal option at any point by:

• Mobile application


• Customer portal


• Customer care support


• Bank auto-debit cancellation

You should, however, remember to renew the policy manually before the expiry date by disabling the auto-renewal.

Policy terms, age, claim history and underwriting conditions may be used to determine coverage, renewal approval and the amount of the premium. Look through the policy wording carefully and always make sure there is auto-renewal.